Punjab caps private school fee hikes at 5%, parents to get refund of excess fees collected over last 3 years
The Punjab Cabinet has approved a major ordinance capping annual fee hikes by private schools at 5%. Schools that charged excessive fees over the last three years may be required to refund parents
PTC Web Desk: The Punjab Cabinet, led by Chief Minister Bhagwant Mann, on Monday approved an ordinance aimed at regulating fee increases in private schools.
Under the proposed changes to the Punjab Regulation of Fee of Unaided Educational Institutions Act, private unaided schools will no longer be allowed to increase annual fees and funds by more than five per cent without approval.
Announcing the decision after the Cabinet meeting, Finance Minister Harpal Singh Cheema said the ordinance would be sent to the Governor for final approval. He added that strict action would be taken against schools found violating the new rules. According to the government, schools that imposed unjustified fee hikes during the past three years may be directed to return the additional amount collected from families.
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Education Minister Harjot Singh Bains said schools seeking a fee increase beyond the five per cent limit will have to justify their demand before a committee constituted by the state government. The institutions will be required to submit financial records and supporting documents, while a detailed audit may also be conducted before any decision is taken.
The minister further stated that authorities have already begun securing records of schools suspected of charging unreasonable fees to ensure transparency in the process.
The issue gained particular attention after the tragic death of a 17-year-old student in Amritsar, whose family had reportedly faced pressure over school fees. The incident sparked widespread debate on private school fee practices and prompted calls for stronger regulation.
Apart from education reforms, the Punjab Cabinet also approved a special one-time settlement scheme aimed at helping industrial units that were unable to claim benefits under earlier industrial policies introduced between 1978 and 2003.
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According to the government, the scheme will help eligible industries receive pending incentives and benefits, while also encouraging fresh investment and industrial revival in the state.